The Impact of Power Distance Belief on Consumers' Brand Preferences

Five lab studies and a field study explore how power distance belief (PDB) influences consumers' preference for mass-market versus niche brands, the underlying mechanisms, and boundary conditions. We find that high (vs. low) PDB consumers are more likely to prefer mass-market over niche brands because they tend to be risk averse, which in turn increases preference for widely used brands. Consequently, the relationship between PDB and brand preferences is mediated by risk aversion. Further, when product usage contexts are risky, low (but not high) PDB consumers' preference for mass-market brands increases, whereas offering an extended money-back guarantee increases high (but not low) PDB consumers' preference for niche brands. In addition, we find that when choosing service providers (versus choosing physical goods), low (but not high) PDB consumers are significantly more likely to prefer mass-market brands over niche brands. We conclude with the implications of these findings for marketers, such as for their segmentation and targeting endeavors. We also provide specific tools that marketers could use, both inside and outside the store, to influence consumers' preference for mass-market versus niche brands.     

Evaluating brand extensions,fit perceptions and post-extension brand image: does size matter?

Abstract

This study contributes to the scant literature considering brand extensions in a competitive context and investigates whether the correlation between consumers’ beliefs about a brand’s attributes and the number of its buyers described in previous research occurs with regard to fit perceptions of brand extensions, extension evaluation and post-extension brand image. In a scenario experiment with real brands and fictitious extensions, members of a commercial UK panel evaluated high and low-fit extensions and post-extension brand images of competing brands of pet food. The relative size of each brand in terms of the number of its buyers was used as a benchmark in the analysis. For all extensions, results reveal a positive correlation between post-extension brand images, extension evaluations, fit perceptions and the number of brand buyers. Results have implications for interpreting consumers’ perceptions of fit, evaluation of extensions and post-extension brand images of competing brands.     

Factors Influencing Successful Brand Extensions

Organisations frequently follow brand extension strategies. This paper investigates the impact of category similarity, brand reputation, perceived risk and consumer innovativeness on the success of brand extensions in FMCG, durable goods and services sectors. A set of hypotheses were developed and tested in a study amongst 701 consumers. The findings show that extensions into categories more similar to the original brand tend to be more readily accepted. Likewise, the reputation of the original brand is an important factor influencing the success of the extension. These findings are consistent across FMCG, durable goods and services brands. However, perceived risk about the extension category was only found to enhance acceptability of extensions for durable goods and services brands. Innovative consumers are more positively disposed towards service brand extensions than FMCG and durable goods brand extensions.     

Why Consumers in Developing Countries Prefer Foreign Brands: A Study of Japanese Brands in Vietnam

ABSTRACT

Building on social-identity theory, the research develops a model for understanding of the impact of consumer identification with a nation on consumers' brand evaluations. It posits that developing-country consumers' identification with a foreign (developed) nation influences three factors—consumer-based brand equity, consumer-based country image, and consumer-based brand credibility. The research was informed by data from 400 Vietnamese consumers in relation to two Japanese brands Sony and Honda and analyzed using structural equation modeling (SEM). The findings show that Vietnamese (developing-country) consumers prefer Japanese (developed-country) brands over domestic brands, when these consumers identify with the developed nation.     

Antecedents of Green Brand Equity: An Integrated Approach

A steady demand for green products from concerned consumers has led companies to introduce new product lines that match or exceed consumer environmental concerns. Nonetheless, not all the organizations were able to achieve significant returns on their investments in green products. These failures are generally attributed towards companies’ inability to overcome consumer scepticism towards the performance of functional and green attributes of their brands to generate a positive green image and green value in consumers mind. Therefore, the question arises that does the success in promoting green brand image and value depend on consumer existing perceptions about the brand quality and credibility? This study analyzes the influence of brand perceive quality and credibility on consumer perceptions towards a brand green image, green value and green equity. A theoretical model with hypothesized relationships is developed and tested to answer these research questions. Data have been collected from the consumers of electrical and electronic goods. The hypothesized relationships were tested with the help of structural equation modeling procedure. The results suggest that brand perceived quality and its overall credibility does have a significant influence on generating a greener image, green perceive value and green brand equity.     

Brand Analyses of U.S. Global and Local Brands in India: The Case of Levi's

ABSTRACT

This study investigates differences between U.S. global and local brands in the Indian market. Attitudes toward American products and the brand equity of U.S. global and local casual apparel brand in the Indian market are examined. It is postulated that global and local brand influence brand equity, which is composed of brand image, brand awareness, emotional value, perceived quality, brand loyalty, and purchase intention. A total of 411 college students in India participated in the survey. Using repeated measures ANOVA, this study finds that Indian consumers perceive global and local brands differently based on brand equity.     

Understanding brand and dealer retention in the new car market: The moderating role of brand tier

Dealers may contribute to brand retention through their sales and service efforts. In this study we investigate the degree to which dealers contribute to brand retention and how this contribution is moderated by brand tier. To this end we distinguish between economy, volume and prestige brands. We also investigate how the effectiveness of dealer instruments to increase dealer retention differs across these brand tiers. We collected data on brand retention and dealer retention among consumers who recently purchased a new car. Our findings show that dealers selling volume brands are able to improve brand retention rates. In contrast, dealers of prestige and economy brands are unable to affect brand retention. In line with the notion of brand-dealer fit we also find that the effects of dealer extrinsic service quality and dealer payment equity on dealer retention differ between prestige, volume, and economy brands. Extrinsic dealer service quality has the smallest effect for dealers selling economy brands, while dealer payment equity is the most important determinant of dealer retention for these dealers.     

Luxury fashion consumption in China: Factors affecting attitude and purchase intent

This study examined influencing factors that affect Chinese consumers’ attitude towards purchasing luxury fashion goods and purchase intent. Data was collected in three major cities in China (i.e., Beijing, Shanghai and Guangzhou). A total of 161 respondents were included. Using regression analyses, the results indicated that brand consciousness, social comparison and fashion innovativeness have significant impact on attitude towards purchasing luxury fashion goods among Chinese consumers. In addition, Chinese consumers’ purchasing intention for luxury fashion goods was affected by their attitude towards buying luxury fashion goods. Practical and managerial implications are further discussed.     

How far can brands go to defend themselves? The extent of negative publicity impact on proactive consumer behaviors and brand equity

Negative publicity, defined as the public disclosure of a problematic incident associated with a brand, is a critical issue for fashion brands, as it vitiates the image of targeted brands and drives consumers’ voice and exit behaviors. Despite the impact of negative publicity, few studies have compared the impact of product‐related versus personnel‐related negative publicity, or explored the extent to which brands’ coping strategies can prevent consumers’ anti‐brand behavioral intentions and recover brand equity. This study used multivariate analyses of variance to analyze responses from 594 American consumers, which revealed that when negative publicity is about a product‐related issue, none of the brand's different recovery efforts are effective in decreasing consumers’ voice and exit intentions and protecting brand equity. However, for a personnel‐related issue, functional and informational recovery strategies were effective in decreasing consumer voice and exit intentions, and affective, functional, and informational recovery strategies positively impacted most domains of brand equity (brand judgement, brand feelings, and brand resonance). The following analysis of variance and post hoc analyses revealed the comparative effectiveness of specific recovery types. Discussions and implications of the findings are provided.     

The dark side of innovation: How new SKUs affect brand choice in the presence of consumer uncertainty and learning

New product activity is critical for sustained success of consumer packaged goods (CPG) brands. However, the impact of new SKUs on the perceived quality, quality uncertainty and subsequent choice of the brand as a whole is, as of yet, not well understood. The authors study how new additions to the brand line shape consumers’ quality perceptions, and how this – next to the mere line length effect – influences their choice of brands over time. They do so in the setting of an emerging market (China), where new product activity is particularly pervasive. Using a unique scanner panel dataset of Chinese households over the period 2011–2014, they estimate a Bayesian learning model that accommodates varying quality, on two CPG categories, and for two types of new-product additions (new sensory SKUs vs. new non-sensory SKUs). They show that while adding new SKUs may lift the brand’s perceived quality level, it also makes consumers more uncertain about the quality of the brand – dampening their brand choice. This holds especially for light customers – an important part of the brand clientele. Managerial implications are discussed.     

Understanding consumer's brand categorization across three countries: Application of fuzzy rule-based classification

In multi-brand situations, people categorize all known brands into subsets called consideration, hold, foggy and reject sets. This is the Brisoux–Laroche model. Traditional brand categorization models including this, assume that consumers can properly categorize each brand into these subsets. However, a brand with both perceived positive and negative attributes increases the difficulty for a consumer to decide about the placement into subsets. This study investigates consumers' brand categorization when a brand has both perceived positive and negative attributes. We propose that a brand may belong to more than one subset (decision fuzziness). Using fuzzy-rule-based classification, this is investigated across three cultures (Chinese, Japanese and Kazakhstan) and two product categories: Quick Service Restaurants (QSR) and beer. The findings confirm that decision fuzziness varies across cultures. Chinese consumers have less decision fuzziness for foreign brands than for local brands in the QSR market. In general, the opposite is found to be true for Japanese and Kazakh consumers.     

A path to altruism: Investigating the effects of brand origin and message explicitness in CR‐M campaigns

An increasing number of fashion brands are employing cause‐related marketing (CR‐M) campaigns to promote their social responsibility. However, with growing consumer skepticism about CR‐M, it is becoming more difficult than before to encourage consumers' positive responses to these campaigns. Based on construal level theory and rhetorical theory, this study examined the way brand origin (local vs. global), and its interaction with message type (explicit vs. implicit), influence consumers' perceived brand altruism and brand favorability. Two experimental studies were conducted with a total of 574 U.S. consumers. The results of Study 1 indicated that consumers exhibited higher perceived brand altruism and brand favorability toward a local brand's CR‐M campaign than a global brand's, showing that psychological distance can influence a CR‐M campaign's effectiveness. In addition, the results of Study 2 revealed that an explicit CR‐M message was more effective for global brands, while an implicit message was more effective for local brands, and perceived brand altruism mediated both effects. This suggests the importance of framing messages according to brand origin to maximize CR‐M campaigns' ability to achieve their goals effectively, in which perceived brand altruism plays a key role. The study's implications and limitations are discussed.     

Brand addiction in the contexts of luxury and fast-fashion brands

Although research on consumer-brand relationship has gained increasing interest among scholars, little is known to date about its most intense form – brand addiction. This research explores the main motives and outcomes of this phenomenon in the two brand categories: luxury and fast-fashion brands. The authors conducted 21 in-depth interviews in the U.S. to tap into the respondents' addictive experiences with luxury and fast-fashion brands. Different themes emerged regarding the motivations for luxury and fast-fashion brand addiction. Self-expressiveness, status consumption and perceived quality are motivators for luxury fashion brand addiction while continuous update of fashion-led items, perceived value, and product assortments are motivators for fast-fashion brand addiction. As for the consequences, interpersonal relationships and financial issues emerged as common themes for addiction to certain luxury and fast-fashion brands while selectivity of style and motivation to work harder surfaced as themes for addiction to particular luxury brands. The results also show that brand addiction may cause both positive and negative effects on consumers’ well-being. This research provides important implications for consumer-brand relationships and ethical considerations for brand managers.     

By-Brand or By-Category? The Effect of Display Format on Brand Extension Evaluation

Although consumers often encounter brand extensions for the first time during a store visit, most research on brand extensions does not take into consideration how product display in retail environments might affect evaluation of a brand extension. We explore the effect of two distinct display formats on brand extension evaluations: by-brand display, where a brand extension is presented in the context of other products made by the same parent brand (e.g., Nike razors displayed with Nike sneakers, Nike sportswear, etc.), and by-category display, where a brand extension is presented in the context of competing brands within the extension category (e.g., Nike razors displayed with Philips razors, Gillette razors, etc.). Three studies demonstrate that low fit extensions of high quality brands are evaluated more favorably when displayed by-category than by-brand, whereas high fit extensions of low quality brands are evaluated more favorably when displayed by-brand than by-category. In support of the proposed underlying mechanism, we show that display format influences consumers’ evaluations of brand extensions by changing the weight of importance given to parent brand quality and brand-extension fit information. Finally, we demonstrate that display format not only influences evaluation of the extension, but also has downstream consequences for the consumption experience with the extension.     

Enhancing brand coolness through perceived luxury values: Insight from luxury fashion brands

Consumers of luxury brands have been described as seekers of products that can offer a signaling value to present to others but also a value for their self-concepts in an existentialist spirit potentially linked to being “cool or not.” Prior studies have conceptualized brand coolness and evaluated its impact on consumer responses to brands. However, few studies have contextualized the construct of brand coolness concerning luxury brand realism. We assessed the semiotic tension that luxury brand consumers feel between self-concept and self-presentation to others via a theoretical consideration of four antecedents of brand coolness: individual, social, financial, and functional luxury values; and one intentional outcome such as consumers' passionate desire to use luxury fashion brands. Our findings indicated that luxury values positively influence brand coolness, and brand coolness positively influences passionate desire. We further confirmed that brand coolness plays a complementary mediating role between luxury values and passionate desire. A final contribution is to invite brand managers to consider how luxury values and brand coolness might be used proactively to drive consumers' passionate desires in the relationships with luxury fashion brands.     

The role of brand exposure and experience on brand recall—Product durables vis-à-vis FMCG

The purpose of this study was to examine the role of brand exposure and experience on brand recall, mediated by three affectional drivers: brand trust, brand image and self-image congruence. The study distinguishes between an individual consumer׳s brand exposure and experience, and how these impact brand recall. Using original data collected from a survey of 219 consumers, brand recall models in two product categories (Fast Moving Consumer Goods FMCG and durable goods) were tested. Structural equation modelling (SEM) was applied, resulting in models for the two types of goods, establishing notable differences between durables and FMCGs. Experience influences brand recall in durable goods while brand recall is established via exposure for fast-moving consumer goods. This suggests that consumers are better able to recall durable goods brands if they have personally used them, while consumers of FMCG are more heavily influenced by advertising. Our study also established that brand trust has a significant role in mediating both of these relationships. Ultimately, the study establishes key differences between the brand recall of product categories, as well as the mediating role of brand trust, providing a framework for future brand recall research.     

Perceived ‘Hispanicness’versus ‘Americanness’

This article discusses how consumers differentiate competing brands of similar utilitarian values on the basis of a brand’s cultural association, namely brand ethnicity, and examines how the perceived brand ethnicity influences consumers’ brand preference and choice. Study findings, based on both qualitative and quantitative research with self-identified His panic consumers, indicate that Hispanic consumers associate certain brands with Hispanic culture and other brands with American culture. In a hypothetical purchasing scenario, the perceived brand ethnicity affects consumers’ brand preference significantly in accordance with their cultural orientation. However, in a real consumer behaviour setting, external factors such as brand accessibility attenuate the effects of brand ethnicity.     

Dimensions of Luxury Brand Personality: Scale Development and Validation

Both the marketing industry and academia have been paying more attention to the growth and potential of the luxury market. This research developed a theoretical framework for understanding the dimensions of luxury brand personality and a reliable and valid scale that measures these dimensions. When 30 luxury brands, ranging from fashion to automobile and retail, were assessed on a set of diverse personality attributes, six dimensions representing luxury brand personality were identified: Excitement, Sincerity, Sophistication, Professionalism, Attractiveness, and Materialism. Findings indicate that while three dimensions, Sincerity, Excitement, and Sophistication, share similar qualities with those identified in Aaker's (1997) scale for general brand personality, the other three dimensions, Professionalism, Attractiveness, and Materialism, reflect meanings unique and specific to luxury brands. Altogether, the results of this research hold the notion that luxury brands serving as consumption symbols provide both utilitarian benefits and symbolic meanings to contemporary consumers.     

Branding in a global marketplace: The mediating effects of quality and self-identity brand signals

Research documents that consumers with a stronger belief in global citizenship through global brands (GCGB) view branded products as more important and prefer global to local brands. We test the mediating effects of consumer use of quality and self-identity brand signals on the relationships between GCGB and the importance attributed to branded products (Study 1: U.S. and Russia) as well as purchases of global brands (Study 2: U.S., U.K, and Russia). Our research establishes that consumer involvement with branded products and purchases of global brands revolves around consumers' use of brands as signals of quality and self-identity. In the developing country, results document mediation effects for the use of both quality and self-identity signals on the importance of branded products and global brand purchases. In developed countries, we find that the importance of branded products is explained by a greater use of brands as self-identity signals, whereas purchases of global brands are explained by a greater use of quality signals. Overall, consumers with a stronger belief in GCGB are more likely to use brands as symbolic signals and to express their identity through brands, and consumer use of global brands as quality signals provides a distinct competitive advantage to global brands in both developed and developing countries.     

Store Brand Quality and Retailer’s Product Line Design

This study analyzes a retailer’s store brand quality decision in vertically differentiated product categories. We analyze a game theoretic model composed of one or two national brand manufacturers and a retailer, who strategically chooses the quality level(s) of its store brand(s) relative to the well-established national brand position(s) to maximize its category profit. Our analysis reveals that the nature of a retailer’s store brand quality positioning is quite different from the manufacturer’s national brand positioning decision, and that the best position for a store brand is not “as close to a national brand as possible” as previous studies suggest. Instead, the optimal quality position of each store brand is remarkably sensitive to the distribution of consumers’ willingness-to-pay. In particular, the relative proportions of quality sensitive consumers and price sensitive consumers determine the balance of three key strategic forces — the market expansion force, the retail margin force, and the consumer profitability force, leading to different optimal product line designs for store brands across different category environments. Interestingly, against multiple incumbent national brands, the retailer’s optimal product line design includes a store brand positioned at the highest quality level in the category only if most consumers are moderately quality conscious. We also analyze the implications of national brands’ brand equity for retailers’ store brand strategy.